Should You Waive a Home Inspection?

After months of house hunting you’ve finally found the one. Unfortunately, your local housing market is hot (read: lots of competition vying for the same house). With other buyers bidding for your dream home, you may be tempted to waive a home inspection in order to expedite the home buying process and appeal to the sellers. While this offer could end up winning you the home, it could also end up costing you down the line. After all, a home is one of the most important purchases you will ever make. It could even be the most important. So it’s absolutely critical to your bank account and sanity that you have all the facts and figures prior to signing a purchasing agreement. Otherwise, you could end up hitching your wagon to a money pit.

Of course, not everyone feels this way. Some home buyers are willing to take this risk in order to get the house they want. For a closer look at what exactly a home inspection entails and why you should or shouldn’t waive a home inspection, take a look below.

What is a home inspection?

If you’ve ever purchased a home, you’re probably very familiar with a home inspection. These inspections are typically conducted once a purchasing agreement has been signed, and the home is officially under contract with a buyer. Home inspections are conducted by certified home inspection professionals. These professionals perform a visual, in-person inspection of the home and provide a written inspection report to the buyer concerning the condition of the home at the time of the inspection. Inspection reports typically include any roof and termite damage, as well as the condition of the overall structural, electrical, plumbing and HVAC systems. In addition, an inspector may report on the condition of a home’s general interior and exterior features, appliances, sprinkler system, pool, windows and doors.

Once the home inspection is complete, the inspector sends the full report to the buyer. From there, the buyer will decide how to proceed with the sale of the home. Depending on what’s in the report, the buyer may decide to request that the seller pay for certain repairs to be made before the closing. If damage to the home is extensive, the buyer may back out of the deal altogether. For this reason, sellers want the home inspection to go as smoothly as possible. If they want to sell their home quickly, they may be willing to negotiate the cost of covering part or all of the repairs.

Who attends a home inspection?

Depending on the size of the home, a thorough inspection can take several hours. While it’s common for buyers to be present for part of the inspection, they aren’t required to be present for all of it. The buyer’s real estate agent will need to be at the home inspection to meet the inspector and discuss any issues that arise. The seller’s real estate agent will also be present to provide keys for the inspector, oversee the process and communicate issues to the seller. It’s unlikely that the seller will be present at a home inspection.

When is it a good idea for home buyers to waive a home inspection?

For the most part, we recommend always arranging for a home inspection before closing on a home. Otherwise, you could end up with quite a few unwelcome surprises (and costly expenses). However, not all home buyers feel the need to perform a home inspection. Those willing to waive a home inspection are typically in tough competition with other buyers for a home. The buyer knows that the seller may look more favorably on an offer that waives a home inspection versus one that doesn’t – even if that opposing offer includes more money. To win favor with the seller, the buyer is willing to risk the possibility that the home may have underlying issues. A buyer is also more likely to waive an inspection if the home is a rundown fixer-upper. In this case, the buyer already knows there are issues and (typically) has the funds to fix them.

Why is a home inspection a good thing for buyers?

Overall, a thorough home inspection conducted by a professional home inspector is a very good thing for buyers. It lets the buyer know exactly what they’re getting before they hand over their money. It also prepares them ahead of time for certain issues with a home. Keep in mind though that unless a home is brand new, a buyer should expect some amount of damage. Minor damage, such as torn window screens or chipped paint, will likely be covered by the buyers once they move in. However, big ticket items such as structural problems or electrical issues may need to be handled by the seller in order for the buyer to move forward with the deal. Unfortunately, home inspections are one of the main reasons why many deals fall through. It’s important that both parties have seasoned and knowledgeable Realtors to negotiate home inspection details successfully.

Bottomline: Don’t waive a home inspection unless you are willing and able to cover the costs of major home repairs down the line.

How should sellers prepare for a home inspection?

It’s in the seller’s best interest that the home inspection goes off without a hitch. To prepare for a home inspection, sellers may want to clean the home, make necessary repairs and touch up cosmetic issues throughout the property. Hiring an electrician, plumber and handyman to fix problems before a home inspection is always a good idea. If the seller knows a problem already exists with the home, they should have this looked at as soon as possible.

Moving soon?

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